Housing rescue on track to pass Senate by Saturday

Housing rescue on track to pass Senate by Saturday

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I am glad to see that some people in dire straits will get to keep their homes, from a humanitarian viewpoint. But this bill needs to be accompanied by far reaching reforms to prevent this from happening again.

It's time that Wall St. and the bankers stop creating more and more money making schemes that fatten their wallets while ruining the consumer's lives.

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Kinda seems like an outta the pot and into the frying pan type deal . So you get out of the banks pocket and into the feds . I think they should have just told the banks they screwed up . Gave the people 3 months off there mortgage to catch up and then back to business . Fix the rates . And if the banks fail cause of there stupidity . Give the people the houses . I mean it was shotty business that did this and not the people right?

Wrong, The people are just as much to blame as the banks. When you are too stupid to know that you can't afford the loan and take it anyway, you are to blame. Why am I and others having to pay for others mistakes? I live with in my means, no credit card debt,payed my house loan off early, drive cheap cars, but my tax money is going to pay off someone else's debt. This country is being destoryed by non-tax paying bums and rich greedy business men. Us working stiffs are being left with the tab.

reply to post by lost in the midwest

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I hardly think someone is stupid cause they didn't expect there payment to triple or more . Where do you get off telling people there stupid cause they didn't know WTF a balloon rate was .
Most of these people COULD afford these loans . And were paying just fine till it went from 1000$ a month to 3000+ How do you adjust to that ?

Not everyone went to college for home lending . Nor do i believe that 80% of middle class even knows that the banks could just turn on there heads and screw them .
Man your mad cause a bunch of people got scammed . You got lucky . Whoo#inghooo. As you said yourself . Your house IS PAYED OFF.
YOU didn't get caught anywhere near this scam . You got your mortgage what 20+ frigging years ago?
Or is the subprime lending thing just a conspiracy to get your precious tax money ?

reply to post by lost in the midwest

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While I see your concern.....
I would be more concerned with the nearly 1 trillion dollars just spent on bombing Iraq back into the middle ages. That is the real mistake we are all paying for.

reply to post by d11_m_na_c05

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Oh come on now, My grandma didn't even get a chance to go to high school, but was able to understand compound interest. Stupid means too lazy to learn. Look it up. People who spend themselves into uncontrolable debt have no one to blame but themselves. When are we going to hold people accountable for their own actions. It not my fault if they didn't pay attention in school. By the way they teach interest rates in grade school.

PS I got my house loan 10 years ago.

[edit on 25-7-2008 by lost in the midwest]

reply to post by lost in the midwest

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Wow so ALL these people were stupid lazy idiots . That cant read or do math.

It had nothing at all to do with the targeted lending . You know giving loans to people they KNEW wouldn't be able to afford them . . The contracts that even lawyers can hardly make out .
Or the fact that it was a SCAM.

Meh im gonna forward this to a few people here that have experience with this . I'll let them tell ya why your wrong.

There was a pretty good piece on the amount of potential money that the taxpayer is on the hook for SO FAR on CNBC today with Steve Liesman today. So far there is $1.43 Trillion in exposure to the housing crisis so far.

Here

Get the real scoop on this Bill on my link to a YouTube in the following thread- the video is not too long and it will explain what created the mess and the mess it will create.

This is a bombshell and we are going to pay for this - maybe at a cost of more than the war.

www.abovetopsecret.com...

Even though I don't totally agree with the bailout....I do know there are honest people out there who were maybe mislead,but at the time the procedure fit into the goal of the homeowner.....let me explain.

We bought our house in 2001....30 year fix...we could afford it..we have good jobs and had a little extra money after all the bills were paid.

2005 we refinanced to an 3/ARM..we cashed out the equity and put it all back into the house (siding,windows,roof) all of it. It raised the value of our house. The plan here was in 3 years, before the rate adjusted, we would refinance back to a fixed 15 or 30yr. It made sense because the house was worth more now. When we tried to refinance this year, we couldnt..turned down twice. Why? because the value of the house went down and therefor we didnt have enough equity.

So you see..we weren't being stupid...we had a plan, we just did'nt see this coming, as alot of homeowners didn't.

Good news is...our mortgage company sent us a letter and said they had reviewed our mortgage and modified it to a 30fix and our rate would not adjust...I know we were lucky !

Ok not everyone who is caught up in this is stupid. Not everyone in this mess are non tax paying bums.

When we took out our mortgage 2.5 years ago we had more than enough to make ends meet and get ahead. What we weren't able to foresee was the drastic rise in gas and consumable prices. Now when those hit times started getting tight. We went back to the mortgage companies after a year to refinance (like we were advised). Yes we had an arm. It was our first home, our dreams, our hope.

Well the equity in the home was not there. So the bank refused to refi.
We started feeling the pich because the extra monthly income was being whittled away by the rise in cost of everything else. Well to shorten this so people don't get bore just monthly expenses alone rose over $600, Then the rate adjusted. That rose our monthly expenses by another $500 a month. That started the down ward spiral. You do what you can to get by. Not always being able to think logically because you are panicking. You take out a few payday loans because you are behind on payments and can't get regular loans. Those just kill ya. Now we are facing foreclosure, losing a vehilce and what ever else comes along.

We have tried working with the banks. They say there is nothing they can do. We have tried working with foreclosure assistance programs ($2500) to them to start. They say you need $3000 more and then come up with another $2000-$3000 ion the next 2 weeks and the bank will work with us. Well that $2500 came from the cars( behind on those now). If I had the extra thousands laying around I wouldn't be behind on payments.

My Point is, not everyone caught in this mess is stupid or ignorant. We got caught unaware and unprepared for what the last 2 1/2 years has brought. Now if you can look into your little crystal ball and tell me what it is going to be like 2 1/2 years from now, then I will give you all the credit in the worl. Unfortunately just like everyone else ,we cannot predict the future. So before you go slamming and putting down your fellow citizens and fellow posters here on ATS you may want to look at all sides of the scenario and be cautios with the name calling and labeling. You never know.....2 1/2 years from now you may find yourself in a predicament you didn't see coming and then someone might be labeling you stupid and ignorant. It won't be me. Because I have been there and I will understand. Compassion is a great thing. We are not looking for sympathy. Just understanding and patience.

reply to post by iggster

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Thanks for posting over here iggster . I don't have the personal experience to rebut these accusations . I am going to look at my first house Sunday (tomorrow) And have been following whats going on and the personal stories.

I have talked to a few people that you could classify as trying to live far beyond there means . But it pails in comparison to those like yourself that were just getting by .. The American dream was sold out . And those that got out with there pants are the lucky ones . Not so much the norm anymore .
I hope things work out . I'm cramming years worth of economics to go in the morning to try to get a crappy 60k house.
I'm by no means dumb . But math is probably my weakest point. I'm considering retaining a lawyer just to go over things with me which of course will drop what i can offer as a down payment. I guess we'll see what comes of tomorrow.

[edit on 26-7-2008 by d11_m_na_c05]

I love the Orwellian names of these bills. It should really be called the bank and GSE bailout bill at the expense of everyone else. My child is two and her children will probably be paying for this bailout.

I'm tired of the sob stories by folks caught up in this mess. It's down right foolish to take an ARM while rates are at a historic low, they only have one way to go when it comes time for reset, up. Anyone who drank the NAR koolaid of buy now or be priced out forever deserves to be forclosed. The only way for this mess to be solved is for either wages to increase or home prices to drop to an affordable level. How in the hell someone making $8 or $9 an hour believes they are entitled to live in a $500,000 home is beyond me.

But guess what people with this bailout passing rates are going to go up anyway, and guess what happens to home value when rates go up. Hank Paulson, sec of treasury PIGMAN extrardinair, has a blank check now to shore up the GSEs up to the debt limit. I'm really interested to see how the rates on the long bond react to this, as a matter of fact after talking to a couple of senators offices yesterday I bought some long dated puts against an etf that tracks the long bond.

A

I love the Orwellian names of these bills. It should really be called the bank and GSE bailout bill at the expense of everyone else. My child is two and her children will probably be paying for this bailout.

I'm tired of the sob stories by folks caught up in this mess. It's down right foolish to take an ARM while rates are at a historic low, they only have one way to go when it comes time for reset, up. Anyone who drank the NAR koolaid of buy now or be priced out forever deserves to be forclosed. The only way for this mess to be solved is for either wages to increase or home prices to drop to an affordable level. How in the hell someone making $8 or $9 an hour believes they are entitled to live in a $500,000 home is beyond me.

But guess what people with this bailout passing rates are going to go up anyway, and guess what happens to home value when rates go up. Hank Paulson, sec of treasury PIGMAN extrardinair, has a blank check now to shore up the GSEs up to the debt limit. I'm really interested to see how the rates on the long bond react to this, as a matter of fact after talking to a couple of senators offices yesterday I bought some long dated puts against an etf that tracks the long bond.

A

Jefwane;
Mine is not a sob story. It is to let everyone know that some of us in trouble are not your 8-9$ hr waged employee trying to keep a $500k house. My wife and I earn around 60k-70k a year. We bought a $130k house but being first time home owners were told by 3 seperate sources that we could only qualify for an ARM. So to establish our dreams and hopes we took it. Hind sight is 20/20.....

Again not a sob story.....Just a chain of events that start to compile and before you know it..... the dam burts. We are still fighting to keep the house. I am still paying what I can on the mortgage and not just giving up and not paying a dime until the kick me out. I am a fighter. I will pay them every available cent until I have no other choice so I am still trying to get it to work out. Only time will tell what the future holds for all of us.

[edit on 26-7-2008 by iggster]

reply to post by iggster

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My post was a little harsh, and I do apologize for coming off that aggressive. I wrote it right after I found out the bill passed and was kinda hot. I don't know what part of the country you live in, but with that income level and the credit standards at the time you should have easily qualified for a fixed rate. When we got our house we made around 50K.We bought an $80k 2br 2bath on an acre in Sept of '05 we qualified for up too $144k and I'm a vet so it's a VA secured loan. We went through a brick an mortar bank and I when i went in I told them I'd rather rent than get into an ARM and to not even run the numbers on one. We had enough bad stuff happen early in our relationship to make sure that we had a payment that was affordable if either of us lost a job. I would say that you were wronged by whoever did your financing.

It's still a bad bill and I really doubt it will do much to help someone in your situation. What I understand about the bill is that for you to refi, you have to prove that you can afford the new payments get agreement from the financier to accept a loss on the loan and share any future appreciation with the government should you qualify and later sell. Banks and GSEs get the largest benefit from the bill. The encumbered banks now can package all their crap mortgages and push them off on the taxpayer via the GSEs and Paulson's blank check.

reply to post by jefwane

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No problem. We had just started establishing credit when we got our house and were told that an arm was the only way for us to get approved due to limited established credit. I wanted to make my wife's dreams come true...you know.... little ranch house...white picket fence...the American dream. In retrospect we bought on emotion and not common sense. I hope this bill can help but I also don't want to burden those that are fine with their housing situation. Kind of a catch 22 for us right now. Foreclosure and drag surrounding properties down or help thru the new bill which will put a burden on those fellow tax payers that made smart decisions and are doing fine.